NP - St. Ralph Continues To Advance the Most Important Cause in American Politics, His Ego

[ish mailian]

David, you would be right if we could open an economic textbook and make
sense of the great contraction and QE, the broken Phillips Curve and etc.,
but we can't. People who agreed with that texbookt view have been wrong
about just about everything economic and financial since 2009. Low and
negative rates and QE were supposed cause inflation, hyper-inflation even.
It was supposed to send gold flying and commodities up up and away and the
dollar down to the bottomless pit.

In short, sir, with all do respect to you and your textbook view, you are
dead wrong, Hope you didn't lose your ass.

The Fed can't deliver a robust economy.  A robust economy must be driven by
the consumer. But consumer, with the exception of the recent appetite for
new automobiles, is not consuming. Even after the great de-leveraging, and
zero rates, animal spirits are dead in the water. Raising interest rates
will get the consumer consuming, otherwise we will need to get used to what
Wall Street and the Gangsters have been peddling, the new normal or secular
stagnation, where the risks they are now prevented from taking are foisted
on us, as we have no other choice but to take on bubbled assets. QE has
gone on too long and has caused new kind of thrift paradox wherein
disinflation and deflation, compounded events such as the reshoring of jobs
to automation, the bust of the commodities super cycle, the collapse of
OPEC and oil...technological innovations....etc...keeps wages down with
productivity and keeps consumers waiting for inflation that is never and
never will be produced by low rates.

Raising rates will help banks in some respects and hurt the banks in
others, same goes for the wealthy who live off interest income and stock
dividends. But it will help the workers most because it will get that
robust economy, 3-4% on track.

On Tue, Nov 3, 2015 at 3:07 PM, David Morris <fqmorris at gmail.com> wrote:

> Key point:  " As Jordan Weissmann at Slate points out, the entire
> argument doesn’t make a lot of sense, as “relatively few households
> actually survive on interest income.” Most ordinary people would benefit a
> lot more from a robust economy than a higher interest rate on their savings
> account, but Nader seems to assume a nation of people living on investments
> rather than on paychecks, which really undermines his
> spokesman-for-the-working-class schtick."
>
> Raising interest rates will only help the Banks and the rich.  What we
> really need is a massive increase of Federal spending to boost the economy,
> and/or a big boost in the minimum wage, to increase demand.  But, failing
> that, at least keep money cheap.  Increasing interest rates is insane when
> the economy is sluggish and inflation is zero.  A really simple point.  All
> the rest is shuck and jive.
>
> David Morris
>
> On Tue, Nov 3, 2015 at 12:38 PM, ish mailian <ishmailian at gmail.com> wrote:
>
>> I don't know much about RN's relationships with female academics or their
>> husbands but he may still claim to be supporting both a rate hike by the
>> Fed and working people, the poor, and the retired, most of whom are not
>> rich but nevertheless, live on investments, the great portion of which is
>> in fixed income securities.
>>
>> One need only give Nader the benefit of the broken Phillip's Curve. There
>> are a growing number of economists who now contend that the continuance of
>> the zero bound policy is hurting the economy and working people because,
>> while unemployment has been driven down to near NAIRU by Fed policy, it
>> will nothing to lift wages and will cost, not only those retired to live on
>> less, but those close to retirement to work longer because investment in
>> safe retirement assets is discouraged while bubbles are made an popped,
>> and, while those indebted must pay off loans with non-inflated wages.
>>
>> The Fed has a triple mandate, though the press and the Fed and Congress
>> confuse things by calling it a duel mandate. The third part is rates. The
>> Fed is charged with keeping rates in a range that promotes growth. It's no
>> doing that now. It is fixated on the Phillips curve model and it's not
>> working now. JY did well to focus on the unemployed and the participation
>> rate and the quit rate etc..., in other words, employment and wages, and
>> ignore inflation. She should continue with that plan. The Fed can't fight
>> the world. At this point, RN is on to something....lift rates to help the
>> working people.
>>
>>
>>
>> On Tue, Nov 3, 2015 at 9:18 AM, David Morris <fqmorris at gmail.com> wrote:
>>
>>> Ralph Nader, epic mansplainer, tells Janet Yellen to listen to her
>>> husband.
>>>
>>>
>>> http://www.salon.com/2015/11/02/ralph_nader_epic_mansplainer_tells_janet_yellen_to_listen_to_her_husband/
>>>
>>> Apparently, Ralph Nader is still talking, though in a way that certainly
>>> inspires a deep desire to go to Tumblr to find as many “shut up” gifs as
>>> one can find. Over the weekend, Nader published a nonsensical piece at the
>>> Huffington Post complaining that “humble savers” are getting screwed by the
>>> Federal Reserve’s unwillingness to raise the interest rate, which Nader
>>> seems to think is an elaborate plot to help the rich banks at the expense
>>> of working people.
>>>
>>> As Jordan Weissmann at Slate points out, the entire argument doesn’t
>>> make a lot of sense, as “relatively few households actually survive on
>>> interest income.” Most ordinary people would benefit a lot more from a
>>> robust economy than a higher interest rate on their savings account, but
>>> Nader seems to assume a nation of people living on investments rather than
>>> on paychecks, which really undermines his spokesman-for-the-working-class
>>> schtick.
>>>
>>
>>
>
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